Capital and Rental Value Analysis of Kolkata Real Estate Market
Kolkata, the city that seems to hold tight in all the turbulence that India’s real estate market might bring upon it, has been on the list of real estate investors for a very long time now. Here is how the city performed in the last quarter of the last year, 2015.
Capital Market Analysis
Even when the preoccupation of residential units expanded its momentum in Kolkata, the capital market of the city in the second part of the year 2015, stayed stable even with the lack of any price appreciation for property in Kolkata by the developers. The presence of land in the North of Kolkata helped the developers in constructing projects, which fitted the economical requirements of the major population of the homebuyers. Consequently, the northern region remained dynamic with the increased amount of transactions in the Q4, Oct-Dec 2015.
The micro markets of the North Kolkata like Baranagar, Sodepur, Dum Dum, Ultadanga, Durganagar, and VIP Road fixated on an average property value rise of approximately four to nine per cent in the capital values of the previous three months. In these prime markets, the affordable residential portfolio priced in the approximate price range between Rs 2500-4000 per sq. ft. led the demand up.
The New Town area that had always been seen as the most preferred residential choice because of the availability of IT hubs in the proximity and its flawless planning. The property market of the locality has also been afloat because of its nomination for becoming a smart city. The decision has pressed the ‘demand’ rates for the houses in New Town and its vicinity up by around four per cent only in the previous three months. In addition the proposal of having monorail connectivity is only seen as the added attraction.
The Residential areas all along the (Eastern Metropolitan) EM Bypass has also been observing the strengthening of property prices in the most recent quarter of the year 2015. Also the widening of corridor as a 12-lane arterial highway has complemented to EM Bypass’s housing appeal.
Rental Market Analysis
When the (KMC) Kolkata Municipal Corporation announced to place a committed water pipeline to source filtered water to the major centers along the EM Bypass, the areas around the stretch like Kasba, Picnic Garden, Garfa, Santoshpur, and Patuli then recorded a surge of one to four per cent in the rental values.
The leasing market of Kolkata continues to remain afloat when compared with the city’s capital market. Here average rent values grew by around two per cent since the previous one year (Q4, 2015 versus Q4, 2014).
Over and above to this two percent, 50 per cent of tracked localities has been recording an increase in the rent value in the approximate bracket of five to 11 per cent in Oct-Dec 2015 when compared to the last year’s Oct-Dec 2014. The areas promising proximity to the IT hubs and easy connectivity were constantly preferred to be the ideal as rental hubs with almost all being in North and South areas.
The areas around the EM Bypass and its vicinity saw a surging rental scenario. They included places like Narendrapur and Garia. These areas saw an increase of around ten and eight per cent, individually in rent values as against to the last year 2014. Also the metro connectivity and price competitiveness have been the major factors leading the rental demand of Narendrapur and Garia on the tenant front.
The primary residential look of the highly-priced and premium areas such as New Town and Salt Lake guaranteed a high rental call in these localities. Also the rent values of these areas saw an increase of approximately six to eight per cent since the previous one year.
Now that you know what makes Kolkata a stable place and the localities that would prove to be the best investment, go find a dealer and book that property in Kolkata.
All the information has been taken from Insite, a quarterly real estate report by 99acres.com